Despite some “welcome progress”, the auditor general was not provided with sufficient evidence to support the MOD’s valuation of military equipment in the form of inventory worth £3bn and capital spares worth £7bn.

The department has also not yet obtained the necessary approvals for the salary of the chief of defence materiel, Bernard Gray, and consequently Morse has reported on the absence of this authorisation.

As of May 2010 the MOD must seek approval from the chief secretary to the Treasury if they want to pay any newly recruited civil servants more than £142,500.

It seems that the word "Military" has the same effect as "Yachting" and "Wedding"; stick it in front of anything and it immediately doubles the price. Photographer... Wedding photographer. Waterproof gloves... Waterproof yachting gloves. Equipment... Military equipment. I'm not surprised they have no idea where the money has gone. Utterly mad!